MIRA INFORM REPORT

 

 

Report Date :

12.05.2014

 

IDENTIFICATION DETAILS

 

Name :

RUBBERFLEX SDN.BHD.

 

 

Formerly Known as :

HEVEAFLEX SDN. BHD.

 

 

Registered Office :

Ubn Tower, Box 48, 10, Jalan P. Ramlee, 21st Floor, 50250 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

26.01.1985

 

 

Com. Reg. No.:

134208-U

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

·         manufacturer of rubber thread. 

Subject offers a full range of elastic yarns based on extruded natural latex. 

 

Subject product ranges includes :

Talc-coated (RX) thread

Powderless (EX) silicone coated thread

Food grade (MP) thread in RX for the manufacture of meat nettings

High Modulus (HM) thread in RX & EX for the furniture industry

Super soft thread for elasticated medical bandages

Brightly coloured EX threads for the toy industry

Baby Diaper grade thread

Super Heat Resistant (SHR) threads in both RX & EX form

Weather resistant thread (LQ) for the sock trade.

 

 

No of Employees :

800 [2014]

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

 

 

Payment Behaviour :

No Complaints

 

 

Litigation :

Clear

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – March 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Malaysia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

C2

Very High Risk

 

D

 

 

malaysia ECONOMIC OVERVIEW

 

Malaysia, a middle-income country, has transformed itself since the 1970s from a producer of raw materials into an emerging multi-sector economy. Under current Prime Minister NAJIB, Malaysia is attempting to achieve high-income status by 2020 and to move farther up the value-added production chain by attracting investments in Islamic finance, high technology industries, biotechnology, and services. NAJIB's Economic Transformation Program (ETP) is a series of projects and policy measures intended to accelerate the country's economic growth. The government has also taken steps to liberalize some services sub-sectors. The NAJIB administration also is continuing efforts to boost domestic demand and reduce the economy's dependence on exports. Nevertheless, exports - particularly of electronics, oil and gas, palm oil and rubber - remain a significant driver of the economy. As an oil and gas exporter, Malaysia has profited from higher world energy prices, although the rising cost of domestic gasoline and diesel fuel, combined with strained government finances, has forced Kuala Lumpur to begin to reduce government subsidies. The government is also trying to lessen its dependence on state oil producer Petronas. The oil and gas sector supplies about 35% of government revenue in 2011. Bank Negera Malaysia (central bank) maintains healthy foreign exchange reserves, and a well-developed regulatory regime has limited Malaysia's exposure to riskier financial instruments and the global financial crisis. Nevertheless, Malaysia could be vulnerable to a fall in commodity prices or a general slowdown in global economic activity because exports are a major component of GDP. In order to attract increased investment, NAJIB has raised possible revisions to the special economic and social preferences accorded to ethnic Malays under the New Economic Policy of 1970, but he has encountered significant opposition, especially from Malay nationalists and other vested interests.

 

Source : CIA

 

 

 

* Adopted abbreviations :

SC - Subject Company (the company enquired by you)

 

N/A - Not Applicable

 

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

134208-U

COMPANY NAME

`

RUBBERFLEX SDN.BHD.

FORMER NAME

:

HEVEAFLEX SDN. BHD. (18/10/1986)
HEVEA INDUSTRIES SDN BHD (12/08/1985)

INCORPORATION DATE

:

26/01/1985

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

UBN TOWER, BOX 48, 10, JALAN P. RAMLEE, 21ST FLOOR, 50250 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

21ST FLOOR, U.B.N. TOWER, BOX NO. 48, NO. 10, JALAN P.RAMLEE, 50250 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

TEL.NO.

:

03-20720011

FAX.NO.

:

03-20785103

EMAIL

:

INFO@RUBBERFLEX.COM.MY

WEB SITE

:

WWW.RUBBERFLEX.COM.MY

CONTACT PERSON

:

ALDO CERINA ( EXECUTIVE CHAIRMAN )

 

 

 

INDUSTRY CODE

:

221

PRINCIPAL ACTIVITY

:

MANUFACTURER OF RUBBER THREAD

AUTHORISED CAPITAL

:

MYR 30,000,000.00 DIVIDED INTO 
ORDINARY SHARE 30,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 22,100,000.00 DIVIDED INTO 
ORDINARY SHARES 22,100,000 CASH OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 658,767,029 [2012]

NET WORTH

:

MYR 246,784,196 [2012]

M1000 OVERALL RANKING

:

528[2011]

M1000 INDUSTRY RANKING

:

12[2011]

 

 

 

STAFF STRENGTH

:

800 [2014]

BANKER (S)

:

HSBC BANK MALAYSIA BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

LIMITED

PAYMENT

:

GOOD

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

GOOD

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 

HISTORY / BACKGROUND

 

The Subject is a private limited company and is allowed to have a minimum of one and a maximum of forty-nine shareholders. As a private limited company, the Subject must have at least two directors. A private limited company is a separate legal entity from its shareholders. As a separate legal entity, the Subject is capable of owning assets, entering into contracts, sue or be sued by other companies. The liabilities of the shareholders are to the extent of the equity they have taken up and the creditors cannot claim on shareholders' personal assets even if the Subject is insolvent. The Subject is governed by the Companies Act, 1965 and the company must file its annual returns, together with its financial statements with the Registrar of Companies.

 

The Subject is principally engaged in the (as a / as an) manufacturer of rubber thread.

 

The Subject is not listed on Bursa Malaysia (Malaysia Stock Exchange).

 

According to the Malaysia 1000 publication, the Subject's ranking are as follows:

 

 

 

 

YEAR

2011

2005

2004

 

OVERALL RANKING

528

822

907

 

INDUSTRY RANKING

12

17

14

 

 

The ultimate holding company of the Subject is RUBBER INTERNATIONAL AG.,, a company incorporated in EUROPE.

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

23/04/2012

MYR 30,000,000.00

MYR 22,100,000.00

31/07/1989

SGD 30,000,000.00

SGD 17,000,000.00

15/02/1989

SGD 30,000,000.00

SGD 15,000,000.00

15/11/1988

SGD 30,000,000.00

SGD 11,000,000.00

 

The major shareholder(s) of the Subject are shown as follows :

Name

Address

IC/PP/Loc No

Shareholding

(%)

RUBBER INTERNATIONAL A.G.

ALTENBACH 8, SL 9490 VADUZ, FURSTENTUM LIECHTENSTIEN, FOREIGN, LIECHTENSTEIN.

AK

11,050,000.00

50.00

TOPONE ESTABLISHMENT

AEULESTRASSE 46, POSTFACH 583, FL-9490,VADUZ LIECHTENSEIN, LIECHTENSTEIN.

XLZ00210884

10,166,000.00

46.00

MALAYSIA NOMINEES (TEMPATAN) SENDIRIAN BERHAD

MENARA OCBC, 18, JALAN TUN PERAK, 19TH FLOOR, 50050 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

6193K

884,000.00

4.00

 

 

 

---------------

------

 

 

 

22,100,000.00

100.00

 

 

 

============

=====

+ Also Director

The Subject's interest in other companies (Subsidiaries/Associates) are shown as follow :

Local No

Country

Company

(%)

As At

 

HONG KONG

RUBBERFLEX (HONG KONG) LIMITED

100.00

31/12/2011

 

 

 

 

 

909715T

MALAYSIA

RUBBERFLEX REENERGY SDN. BHD.

100.00

01/04/2013

 

 

 

 

 

 

 

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MR. KRISTOPA ANAK WATT

Address

:

82, KAMPUNG SELAMPIT, 1ST DIV, 94500 LUNDU, SARAWAK, MALAYSIA.

 

 

 

New IC No

:

680115-13-5557

Date of Birth

:

15/01/1968

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

09/06/2006

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MR. EUGENE KANG HONG NGEE

Address

:

B-5-3, LOJING HEIHGTS 1, SEKSYEN 5, WANGSA MAJU, 53300 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

A2180211

New IC No

:

720323-01-5465

Date of Birth

:

23/03/1972

 

 

 

Nationality

:

MALAYSIAN CHINESE

Date of Appointment

:

10/06/2008

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

ALDO CERINA

Address

:

12, JALAN TAMAN U THANT, 55000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

782253D

 

 

 

 

 

 

 

 

 

 

 

 

Date of Appointment

:

03/04/1989

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 4

 

Name Of Subject

:

EDGAR B VENTURA

Address

:

390, LORONG BENTONG MAKMUR 14, 28700 BENTONG, PAHANG, MALAYSIA.

IC / PP No

:

EB3797935

 

 

 

 

 

 

 

 

 

Nationality

:

FILIPINO

Date of Appointment

:

08/04/2003

 

 

 

 

 

 

 

 

 

 

 

 




MANAGEMENT

 

 

 

1)

Name of Subject

:

ALDO CERINA

 

Position

:

EXECUTIVE CHAIRMAN

 

 

 

 

 

2)

Name of Subject

:

KRISTOPA AK WATT

 

Position

:

MANAGING DIRECTOR

 

 

 

 

 

3)

Name of Subject

:

RAYMOND

 

Position

:

FINANCE & ADMIN MANAGER

 

 

 

 

 

4)

Name of Subject

:

MAZLAN MOPIT

 

Position

:

HUMAN RESOURCE MANAGER

 

 

 

AUDITOR

 

Auditor

:

BAKER TILLY AC

Auditor' Address

:

TOWER 1, AVENUE 5, BANGSAR SOUTH CITY, LEVEL 10, 59200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. WONG YOUN KIM

 

IC / PP No

:

A1617285

 

New IC No

:

700823-10-5530

 

Address

:

1041, JALAN KUANG GUNUNG 4, TAMAN KEPONG, 52100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

2)

Company Secretary

:

MR. WONG MAW CHUAN

 

 

 

 

 

New IC No

:

640419-10-6345

 

Address

:

6, JALAN BK 3/8F, BANDAR KINRARA, 47100 PUCHONG, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

3)

Company Secretary

:

MR. EUGENE KANG HONG NGEE

 

IC / PP No

:

A2180211

 

New IC No

:

720323-01-5465

 

Address

:

B-5-3, LOJING HEIHGTS 1, SEKSYEN 5, WANGSA MAJU, 53300 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

HSBC BANK MALAYSIA BHD

 

 

 

 

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

23/06/1986

N/A

OVERSEACHINESE BANKING CORPORATION LTD

MYR 9,500,000.00

Satisfied

2

21/06/1988

N/A

BAN HIN LEE BANK BHD

MYR 4,750,000.00

Satisfied

3

21/06/1988

N/A

BAN HIN LEE BANK BHD

MYR 4,000,000.00

Satisfied

5

21/06/1988

N/A

BAN HIN LEE BANK BHD

MYR 8,750,000.00

Satisfied

4

12/07/1988

N/A

OVERSEA CHINESE BANKING CORP LTD

MYR 600,000.00

Satisfied

6

28/11/1988

N/A

OVERSEACHINESE BANKING CORP LTD

MYR 20,000,000.00

Satisfied

7

28/12/1988

N/A

BAN HIN LEE BANK BERHAD

MYR 350,000.00

Satisfied

8

07/11/1991

N/A

BANK BUMIPUTRA MALAYSIA BHD

MYR 20,300,000.00

Satisfied

9

07/06/1995

N/A

BANK BUMIPUTRA MALAYSIA BERHAD

MYR 20,300,000.00

Satisfied

10

12/12/1996

N/A

BANK BUMIPUTRA MALAYSIA BERHAD

MYR 20,300,000.00

Satisfied

 

 

LEGAL CHECK AGAINST SUBJECT


* A check has been conducted in our databank against the Subject whether the subject has been involved in any litigation. Our databank consists of 99% of the wound up companies in Malaysia.

No legal action was found in our databank. 

No winding up petition was found in our databank. 

DEFAULTER CHECK AGAINST SUBJECT


* We have checked through the Subject in our defaulters' database which comprised of debtors that have been blacklisted by our customers and debtors that have been placed or assigned to us for collection since 1990. Information was provided by third party where the debt amount can be disputed. Please check with creditors for confirmation as alleged debts may have been paid since recorded or are being disputed.

No blacklisted record & debt collection case was found in our defaulters' databank.

 

PAYMENT RECORD

 

 

SOURCES OF RAW MATERIALS:

Local

:

YES

Overseas

:

YES

Import Countries

:

TAIWAN,EUROPE,THAILAND



The Subject refused to provide any name of trade/service supplier and we are unable to conduct any trade enquiry. However, from financial historical data we conclude that :

 

OVERALL PAYMENT HABIT

Prompt 0-30 Days

[

 

]

 

Good 31-60 Days

[

X

]

 

Average 61-90 Days

[

 

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 

 

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

 

 

 

Export Market

:

AUSTRALIA

CANADA

FINLAND

GERMANY

UNITED STATES

UNITED KINGDOM

ASIA

Credit Term

:

30 - 60 DAYS

 

 

 

 

 

 

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)
LETTER OF CREDIT (LC)

Type of Customer

:

TEXTILES AND GARMENT INDUSTRIES

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Products manufactured

:

RUBBER THREAD

 

 

 

Product Brand Name

:

RUBBERFLEX

 

 

 

Award

:

1 ) MS ISO 9001 : 2000 Year :2003

 

 

 

 

Member(s) / Affiliate(s)

:

FEDERATION OF MALAYSIAN MANUFACTURERS (FMM)

SMI ASSOCIATION OF MALAYSIA

MALAYSIA EXTERNAL TRADE DEVELOPMENT CORPORATION (MATRADE)

SMALL & MEDIUM ENTERPRISE

 

 

 

Ownership of premises

:

OWNED

 

Factory / Premises

:

LOT 2, BENTONG INDUSTRIAL AREA, 28700 BENTONG, PAHANG, MALAYSIA. 
Tel No: 09-2224611 
Fax No: 09-2225300

 

 

 

 

Factory Size

:

24.5 ACRES

 

 

Total Number of Employees:

 

YEAR

2014

2013

2012

2011

2010

 

 

 

 

GROUP

N/A

N/A

N/A

N/A

N/A

 

 

 

 

COMPANY

800

800

800

750

750

 

 

 

 

 

Branch

:

YES

 

No of Branches

:

2

 

 

Other Information:

The Subject is principally engaged in the (as a / as an) manufacturer of rubber thread. 

The Subject offers a full range of elastic yarns based on extruded natural latex. 


The Subject's products portfolio is includes as follows:

* Talc-coated (RX) thread
* Powderless (EX) silicone coated thread
* Food grade (MP) thread in RX for the manufacture of meat nettings
* High Modulus (HM) thread in RX & EX for the furniture industry
* Super soft thread for elasticated medical bandages
* Brightly coloured EX threads for the toy industry
* Baby Diaper grade thread
* Super Heat Resistant (SHR) threads in both RX & EX form
* Weather resistant thread (LQ) for the sock trade.

The Subject utilizes state-of-the-art Italian technology machineries at its factory to ensure production of high quality products. 


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

03-20720011

Match

:

N/A

 

 

 

Address Provided by Client

:

21ST FLOOR U B N TOWER BOX 48 NO 10 JALAN P RAMLEE 50250

Current Address

:

21ST FLOOR, U.B.N. TOWER, BOX NO. 48, NO. 10, JALAN P.RAMLEE, 50250 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

Match

:

NO

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations

we contacted one of the staff from the Subject and she provided some information.

The address provided is incomplete.

FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Erratic

[

2008 - 2012

]

 

Profit/(Loss) Before Tax

:

Decreased

[

2008 - 2012

]

 

Return on Shareholder Funds

:

Unfavourable

[

3.94%

]

 

Return on Net Assets

:

Unfavourable

[

4.91%

]

 

 

 

 

 

 

 

 

The fluctuating turnover reflects the fierce competition among the existing and new market players.The Subject's profit fell sharply because of the high operating costs incurred. The unfavourable return on shareholders' funds could indicate that the Subject was inefficient in utilising its assets to generate returns.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Unfavourable

[

67 Days

]

 

Debtor Ratio

:

Unfavourable

[

74 Days

]

 

Creditors Ratio

:

Favourable

[

10 Days

]

 

 

 

 

 

 

 

 

The Subject could be incurring higher holding cost. As its capital was tied up in stocks, it could face liquidity problems. The high debtors' ratio could indicate that the Subject was weak in its credit control. However, the Subject could also giving longer credit periods to its customers in order to boost its sales or to capture / retain its market share. The Subject had a favourable creditors' ratio where the Subject could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Liquid Ratio

:

Favourable

[

1.04 Times

]

 

Current Ratio

:

Unfavourable

[

1.82 Times

]

 

 

 

 

 

 

 

 

A minimum liquid ratio of 1 should be maintained by the Subject in order to assure its creditors of its ability to meet short term obligations and the Subject was in a good liquidity position. Thus, we believe the Subject is able to meet all its short term obligations as and when they fall due.

 

 

 

 

 

 

 

Solvency

 

 

 

 

 

 

Interest Cover

:

Acceptable

[

5.07 Times

]

 

Gearing Ratio

:

Favourable

[

0.51 Times

]

 

 

 

 

 

 

 

 

The Subject's interest cover was slightly low. If there is no sharp fall in its profit or sudden increase in the interest rates, we believe the Subject is able to generate sufficient income to service its interest and repay the loans. The Subject was lowly geared thus it had a low financial risk. The Subject was mainly financed by its shareholders' funds and internally generated funds. In times of economic slowdown / downturn, the Subject being a lowly geared company, will be able to compete better than those companies which are highly geared in the same industry.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

The Subject recorded lower profits as its turnover showed a erratic trend. The Subject's management was unable to control its costs efficiently as its profit showed a downward trend. The Subject was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the Subject should be able to repay its short term obligations. The Subject had an acceptable interest cover. If there is no sudden sharp increase in interest rate or fall in the Subject's profit, we do believe the Subject is able to generate sufficient cash flow to service its interest payment. The Subject as a lowly geared company, will be more secured compared to those highly geared companies. It has the ability to meet all its long term obligations.

 

 

 

 

 

 

 

Overall financial condition of the Subject : LIMITED

 

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2009

2010

2011

2012*

2013**

 

 

 

 

 

 

Population ( Million)

28.13

28.35

28.70

29.30

29.80

Gross Domestic Products ( % )

(0.5)

7.2

5.1

5.6

5.3

Domestic Demand ( % )

2.9

6.3

8.2

9.4

5.6

Private Expenditure ( % )

(2.7)

8.1

8.2

8.0

7.4

Consumption ( % )

0.7

6.7

7.1

1.0

5.7

Investment ( % )

(17.2)

17.7

12.2

11.7

13.3

Public Expenditure ( % )

5.2

3.8

8.4

13.3

1.2

Consumption ( % )

3.1

0.2

16.1

11.3

(1.2)

Investment ( % )

8.0

2.8

(0.3)

15.9

4.2

 

 

 

 

 

 

Balance of Trade ( MYR Million )

89,650

118,356

116,058

106,300

110,700

Government Finance ( MYR Million )

(28,450)

(40,482)

(45,511)

(42,297)

(39,993)

Government Finance to GDP / Fiscal Deficit ( % )

(4.8)

(5.6)

(5.4)

(4.5)

(4.0)

Inflation ( % Change in Composite CPI)

(5.2)

5.1

3.1

1.6

2.5

Unemployment Rate

4.5

3.9

3.3

3.2

3.0

 

 

 

 

 

 

Net International Reserves ( MYR Billion )

331

329

415

427

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

2.87

2.20

3.50

2.20

-

Average 3 Months of Non-performing Loans ( % )

11.08

15.30

14.80

14.70

-

Average Base Lending Rate ( % )

5.53

6.30

6.60

6.53

-

Business Loans Disbursed( % )

10.5

14.7

15.3

32.2

-

Foreign Investment ( MYR Million )

22,156.8

22,517.9

23,546.1

26,230.4

-

Consumer Loans ( % )

-

-

-

-

-

 

 

 

 

 

 

Registration of New Companies ( No. )

41,578

44,148

45,455

45,441

-

Registration of New Companies ( % )

(0.1)

6.2

3.0

(0.0)

-

Liquidation of Companies ( No. )

39,075

25,585

132,476

-

-

Liquidation of Companies ( % )

39.6

(34.5)

417.8

-

-

 

 

 

 

 

 

Registration of New Business ( No. )

312,581

271,414

284,598

324,761

-

Registration of New Business ( % )

-

-

-

-

-

Business Dissolved ( No. )

19,345

19,738

20,121

-

-

Business Dissolved ( % )

2.4

2.0

1.9

-

-

 

 

 

 

 

 

Sales of New Passenger Cars (' 000 Unit )

486.3

543.6

535.1

552.2

-

Cellular Phone Subscribers ( Million )

30.1

32.8

35.3

38.5

-

Tourist Arrival ( Million Persons )

23.6

24.6

24.7

25.0

-

Hotel Occupancy Rate ( % )

58.0

63.0

60.6

62.4

-

 

 

 

 

 

 

Credit Cards Spending ( % )

12.8

14.1

15.6

12.6

-

Bad Cheque Offenders (No.)

36,667

33,568

32,627

26,982

-

Individual Bankruptcy ( No.)

16,228

18,119

19,167

19,575

-

Individual Bankruptcy ( % )

16.7

11.7

5.8

2.1

-

INDUSTRIES ( % of Growth ):

2009

2010

2011

2012*

2013**

 

 

 

 

 

 

Agriculture

0.4

2.1

5.9

0.6

2.4

Palm Oil

(1.1)

(3.4)

10.8

(2.8)

-

Rubber

(19.8)

9.9

6.1

(0.6)

-

Forestry & Logging

(5.9)

(3.3)

(7.6)

(2.2)

-

Fishing

5.5

5.6

2.1

(0.7)

-

Other Agriculture

9.0

7.9

7.1

6.4

-

Industry Non-Performing Loans ( MYR Million )

413.7

508.4

634.1

-

-

% of Industry Non-Performing Loans

1.3

2.1

3.2

-

-

 

 

 

 

 

 

Mining

(3.8)

0.2

(5.7)

1.5

2.7

Oil & Gas

2.1

0.5

(1.7)

-

-

Other Mining

-

-

-

-

-

Industry Non-performing Loans ( MYR Million )

44.2

49.7

46.5

-

-

% of Industry Non-performing Loans

0.1

0.1

0.1

-

-

 

 

 

 

 

 

Manufacturing #

(9.4)

11.4

4.7

4.2

4.9

Exported-oriented Industries

(19.0)

12.1

2.8

4.1

-

Electrical & Electronics

(30.3)

28.4

(4.9)

1.6

-

Rubber Products

(10.1)

25.3

15.4

3.6

-

Wood Products

(24.1)

20.1

(4.9)

4.6

-

Textiles & Apparel

(19.5)

(0.4)

14.8

(7.1)

-

Domestic-oriented Industries

(9.8)

16.3

6.5

8.6

-

Food, Beverages & Tobacco

0.2

3.0

4.2

-

-

Chemical & Chemical Products

(7.7)

16.2

5.5

9.9

-

Plastic Products

(9.1)

2.4

3.8

-

-

Iron & Steel

(32.7)

29.3

2.4

-

-

Fabricated Metal Products

(2.5)

14.9

25.2

-

-

Non-metallic Mineral

(15.5)

20.2

27.1

6.6

-

Transport Equipment

(13.5)

36.5

(10.4)

13.7

-

Paper & Paper Products

(5.0)

18.7

14.8

(7.8)

-

Crude Oil Refineries

0.2

(11.4)

9.3

-

-

Industry Non-Performing Loans ( MYR Million )

6,007.3

6,217.5

6,537.2

-

-

% of Industry Non-Performing Loans

18.3

23.8

25.7

-

-

 

 

 

 

 

 

Construction

5.8

5.1

4.4

15.5

11.2

Industry Non-Performing Loans ( MYR Million )

3,241.8

4,038.5

3,856.9

-

-

% of Industry Non-Performing Loans

9.9

10.7

10.2

-

-

 

 

 

 

 

 

Services

2.6

6.5

6.4

5.5

5.6

Electric, Gas & Water

0.4

8.5

5.6

4.8

-

Transport, Storage & Communication

1.6

7.7

6.5

7.3

-

Wholesale, Retail, Hotel & Restaurant

2.8

4.7

5.2

6.9

-

Finance, Insurance & Real Estate

3.8

6.1

6.3

6.5

-

Government Services

2.0

6.7

7.6

5.6

-

Other Services

4.4

4.2

5.4

5.7

-

Industry Non-Performing Loans ( MYR Million )

6,631.3

7,384.6

6,825.2

-

-

% of Industry Non-Performing Loans

20.2

25.7

23.4

-

-

 

 

 

 

 

 

 

 

 

 

 

 

* Estimate / Preliminary

 

 

 

 

 

** Forecast

 

 

 

 

 

# Based On Manufacturing Production Index 
(Source : Department of Statistics / Economic Report / Bank Negara Report)

 

INDUSTRY ANALYSIS

 

MSIC CODE

221 : Manufacture of rubber products

 

 

INDUSTRY :

MANUFACTURING

 

 

 

The Manufacturing sector is one of the important sectors to the growth of the Malaysian economy. According to Ministry of Finance, the manufacturing sector is expected to grow 4.9% in year 2013. Export oriented-industries are expected to benefit from the higher growth of global trade, while domesticoriented industries expand in line with the better consumer sentiment and business confidence. The resource-based industries are envisaged to grow steadily attributed to improved demand for petroleum, chemical, rubber and plastic products. With better job prospects and higher disposable income, the transportation equipment subsector, in particular, the passenger car segment is expected to expand. 

 

Value-added of the manufacturing sector expanded 5% during the first half of 2012. Output of the sector rose 5.2% during the first sevenmonths of 2012 in line with the increase in sales value of manufactured products by 6.5% to RM363.1 billion. Output from domesticoriented industries continued to expand 8.6% while export-oriented industries grew 4.1%.

 

According to the Department of Statistics, the sales value of the Manufacturing sector in January 2013 posted a growth of 7.4% (RM3.6 billion) to record RM52.4 billion as compared to RM48.8 billion reported in year 2012. Meanwhile, month-on-month basis, the sales value has decreased by 0.4% (RM0.2 billion) as compared with the preceding month. The sales value in December 2012 has been revised positive 7.5% year-on-year to record RM52.6 billion. 

 

Output of rubber products increased 3.6% in the first seven month of 2012 mainly supported by continuous demand for rubber gloves. Output of rubber gloves grew 5.9% on account of the expansion in the global healthcare industry and wider usage of gloves in other sectors. Similarly, output of catheters, especially for use in medical appliances, also registered a strong growth of 12.6%. Nevertheless, production of rubber tyres and tubes reduced 10.9% in tandem with slowing external demand from the automotive industry, especially China. 

 

Meanwhile, production of wood and wood products rebounded 4.6% largely supported by higher demand for wooden and cane furniture (33.5%). The positive performance was attributed to vibrant higher demand from major export destinations such as China and the United States (US) for Malaysian-made furniture. Demand from China accelerated further following the country’s rising income level and the implementation of zero import duty on Malaysian made-furniture. Malaysia government has growth target of 6.5% for wood based furniture where estimated to reach up to RM53 billion by year 2020.The government providing pioneer status for tax exemption and investment tax allowance for this industry as a boost up step towards produce good quality product and to meet the world demand.

 

The output of chemicals and chemical products rose 9.9% in the first seven month of year 2012 on account of increasing demand for plastic products (11.8%) and basic chemicals (11.1%). External demand for plastic packaging materials surged during the early part of the year 2012, particularly from Japan and Thailand, as manufacturers resumed operations, which were interrupted by natural calamities and power outages. Chemical production are expected to show 7.5 % in year 2013 inline with Malaysia as one of the largest contributor in world Chemicals & Chemical industries. 

 

Tax and non-tax incentives provided by goverment encourage manufacturers to move up the value chain of manufacturing industry. The new growth initiatives by goverment in the manufacturing sector such assolar and medial services can be important drivers of growth apart from helping to diversify the manufacturing base and contributing to the resilience of the sector.

 

 

OVERALL INDUSTRY OUTLOOK : Average Growth

 

CREDIT RISK EVALUATION & RECOMMENDATION

 

Incorporated in 1985, the Subject is a Private Limited company, focusing on manufacture of rubber thread. The Subject has been in business for over two decades. It has built up a strong clientele base and good reputation will enable the Subject to further enhance its business in the near term. The Subject is expected to enjoy a stable market shares. Having strong support from its holding company has enabled the Subject to remain competitive despite the challenging business environment. The Subject is a large entity with strong capital position. We are confident with the Subject's business and its future growth prospect. 

Over the years, the Subject has penetrated into both the local and overseas market. The Subject has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the Subject to further enhance its business in the near term. Being a large entity, the Subject has a steady workforce of 800 personnel to support its business operations. Its future prospects seem to be fairly good as its business operations are running relatively stable. Overall, we regard that the Subject's management capability is average. This indicates that the Subject has greater potential to improve its business performance and raising income for the Subject. 

The Subject's business performance showed a reverse trend as both its turnover and pre-tax profit have decreased compared to the previous year. The Subject has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. The Subject however is in good liquidity position with its current liabilities well covered by it current assets. Hence, it has sufficient working capital to meet its short term financial obligations. Being a lowly geared company, the Subject is exposed to low financial risk as it is mainly dependent on its internal funds to finance its business needs. Given a positive net worth standing at MYR 246,784,196, the Subject should be able to maintain its business in the near terms. 

Having a strong assets backing, the Subject possesses latent assets as collateral for further financial extension. Hence, it has good chance of getting loans if the needs arises. The Subject's supplier are from both the local and overseas countries. This will eliminates the risk of dependency on deliveries from a number of key suppliers and insufficient quantities of its raw materials. Overall the Subject has a good control over its resources. 

Overall, the Subject's payment habit is good as the Subject has a good credit control and it could be taking advantage of the cash discounts while maintaining a good reputation with its creditors. 

The industry shows an upward trend and this trend is very likely to sustain in the near terms. Hence, the Subject is expected to benefit from the favourable outlook of the industry. 

Based on the above condition, we recommend credit be granted to the Subject promptly.

 

 

PROFIT AND LOSS ACCOUNT

 

 

 

THE FINANCIAL STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIAN FINANCIAL REPORTING STANDARDS(FRS)

RUBBERFLEX SDN.BHD.

 

Financial Year End

2012-12-31

2011-12-31

2010-12-31

2009-12-31

2008-12-31

Months

12

12

12

12

12

Consolidated Account

GROUP

GROUP

GROUP

GROUP

GROUP

Audited Account

YES

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

YES

Financial Type

FULL

FULL

FULL

FULL

FULL

Currency

MYR

MYR

MYR

MYR

MYR

 

 

 

 

 

 

TURNOVER

658,767,029

852,549,401

745,214,544

664,663,887

550,383,667

 

----------------

----------------

----------------

----------------

----------------

Total Turnover

658,767,029

852,549,401

745,214,544

664,663,887

550,383,667

 

----------------

----------------

----------------

----------------

----------------

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

10,574,168

21,401,086

44,281,189

64,695,874

3,446,839

 

----------------

----------------

----------------

----------------

----------------

PROFIT/(LOSS) BEFORE TAXATION

10,574,168

21,401,086

44,281,189

64,695,874

3,446,839

Taxation

(848,812)

(2,822,381)

(1,214,615)

(7,114,821)

38,435

 

----------------

----------------

----------------

----------------

----------------

PROFIT/(LOSS) AFTER TAXATION

9,725,356

18,578,705

43,066,574

57,581,053

3,485,274

 

----------------

----------------

----------------

----------------

----------------

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

220,003,868

225,735,163

194,823,589

149,397,536

145,912,262

 

----------------

----------------

----------------

----------------

----------------

As restated

220,003,868

225,735,163

194,823,589

149,397,536

145,912,262

 

----------------

----------------

----------------

----------------

----------------

PROFIT AVAILABLE FOR APPROPRIATIONS

229,729,224

244,313,868

237,890,163

206,978,589

149,397,536

DIVIDENDS - Ordinary (paid & proposed)

(5,525,000)

(24,310,000)

(12,155,000)

(12,155,000)

-

 

----------------

----------------

----------------

----------------

----------------

RETAINED PROFIT/(LOSS) CARRIED FORWARD

224,204,224

220,003,868

225,735,163

194,823,589

149,397,536

 

=============

=============

=============

=============

=============

 

 

 

 

 

 

Others

2,597,056

2,371,094

4,386,514

4,604,873

9,185,830

 

----------------

----------------

----------------

----------------

----------------

 

2,597,056

2,371,094

4,386,514

4,604,873

9,185,830

 

=============

=============

=============

=============

=============

 

 

 

BALANCE SHEET

 

 

RUBBERFLEX SDN.BHD.

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

141,683,725

153,346,431

156,855,571

157,358,193

173,373,478

 

 

 

 

 

 

Associated companies

-

-

-

-

32,147

Others

5,088

552,525

3,280,459

2,593,062

-

 

----------------

----------------

----------------

----------------

----------------

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

5,088

552,525

3,280,459

2,593,062

32,147

 

 

 

 

 

 

 

----------------

----------------

----------------

----------------

----------------

TOTAL LONG TERM ASSETS

141,688,813

153,898,956

160,136,030

159,951,255

173,405,625

 

 

 

 

 

 

Stocks

120,568,667

153,644,317

113,956,023

78,280,806

86,833,337

Trade debtors

134,195,109

134,467,716

185,956,301

135,499,798

130,042,961

Other debtors, deposits & prepayments

1,392,363

3,299,865

2,796,307

2,084,673

9,277,178

Short term deposits

79,942

1,634,190

-

-

-

Cash & bank balances

21,010,941

22,915,971

43,653,383

28,388,498

26,770,664

Others

4,526,369

1,027,138

2,817,171

-

1,857,086

 

----------------

----------------

----------------

----------------

----------------

TOTAL CURRENT ASSETS

281,773,391

316,989,197

349,179,185

244,253,775

254,781,226

 

----------------

----------------

----------------

----------------

----------------

TOTAL ASSET

423,462,204

470,888,153

509,315,215

404,205,030

428,186,851

 

=============

=============

=============

=============

=============

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

17,571,759

26,168,953

40,027,614

27,179,604

22,402,953

Other creditors & accruals

10,291,522

9,171,490

21,187,908

14,117,966

10,946,113

Bank overdraft

-

-

-

-

686,061

Other borrowings

125,526,627

167,996,694

113,000

8,326,000

89,871,441

Bill & acceptances payable

-

-

14,257,000

31,148,790

100,826,140

Amounts owing to director

233,019

190,897

-

7,650

418,392

Provision for taxation

345,181

-

-

934,420

-

Dividends payable/proposed

1,105,000

1,105,000

1,105,000

17,260,000

13,105,000

Other liabilities

-

2,035,250

163,415,079

66,741,538

-

 

----------------

----------------

----------------

----------------

----------------

TOTAL CURRENT LIABILITIES

155,073,108

206,668,284

240,105,601

165,715,968

238,256,100

 

----------------

----------------

----------------

----------------

----------------

NET CURRENT ASSETS/(LIABILITIES)

126,700,283

110,320,913

109,073,584

78,537,807

16,525,126

 

----------------

----------------

----------------

----------------

----------------

TOTAL NET ASSETS

268,389,096

264,219,869

269,209,614

238,489,062

189,930,751

 

=============

=============

=============

=============

=============

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

22,100,000

22,100,000

22,100,000

22,100,000

22,100,000

 

----------------

----------------

----------------

----------------

----------------

TOTAL SHARE CAPITAL

22,100,000

22,100,000

22,100,000

22,100,000

22,100,000

 

 

 

 

 

 

Exchange equalisation/fluctuation reserve

479,972

977,401

-

-

-

Retained profit/(loss) carried forward

224,204,224

220,003,868

225,735,163

194,823,589

149,397,536

Others

-

-

569,851

143,373

350,015

 

----------------

----------------

----------------

----------------

----------------

TOTAL RESERVES

224,684,196

220,981,269

226,305,014

194,966,962

149,747,551

 

 

 

 

 

 

 

----------------

----------------

----------------

----------------

----------------

SHAREHOLDERS' FUNDS/EQUITY

246,784,196

243,081,269

248,405,014

217,066,962

171,847,551

 

 

 

 

 

 

Deferred taxation

21,604,900

21,138,600

20,804,600

21,422,100

18,083,200

 

----------------

----------------

----------------

----------------

----------------

TOTAL LONG TERM LIABILITIES

21,604,900

21,138,600

20,804,600

21,422,100

18,083,200

 

----------------

----------------

----------------

----------------

----------------

 

268,389,096

264,219,869

269,209,614

238,489,062

189,930,751

 

=============

=============

=============

=============

=============

 

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

RUBBERFLEX SDN.BHD.

 

TYPES OF FUNDS

 

 

 

 

 

Cash

21,090,883

24,550,161

43,653,383

28,388,498

26,770,664

Net Liquid Funds

21,090,883

24,550,161

29,396,383

(2,760,292)

(74,741,537)

Net Liquid Assets

6,131,616

(43,323,404)

(4,882,439)

257,001

(70,308,211)

Net Current Assets/(Liabilities)

126,700,283

110,320,913

109,073,584

78,537,807

16,525,126

Net Tangible Assets

268,389,096

264,219,869

269,209,614

238,489,062

189,930,751

Net Monetary Assets

(15,473,284)

(64,462,004)

(25,687,039)

(21,165,099)

(88,391,411)

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

125,526,627

167,996,694

14,370,000

39,474,790

191,383,642

Total Liabilities

176,678,008

227,806,884

260,910,201

187,138,068

256,339,300

Total Assets

423,462,204

470,888,153

509,315,215

404,205,030

428,186,851

Net Assets

268,389,096

264,219,869

269,209,614

238,489,062

189,930,751

Net Assets Backing

246,784,196

243,081,269

248,405,014

217,066,962

171,847,551

Shareholders' Funds

246,784,196

243,081,269

248,405,014

217,066,962

171,847,551

Total Share Capital

22,100,000

22,100,000

22,100,000

22,100,000

22,100,000

Total Reserves

224,684,196

220,981,269

226,305,014

194,966,962

149,747,551

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

0.14

0.12

0.18

0.17

0.11

Liquid Ratio

1.04

0.79

0.98

1.00

0.70

Current Ratio

1.82

1.53

1.45

1.47

1.07

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

67

66

56

43

58

Debtors Ratio

74

58

91

74

86

Creditors Ratio

10

11

20

15

15

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

0.51

0.69

0.06

0.18

1.11

Liabilities Ratio

0.72

0.94

1.05

0.86

1.49

Times Interest Earned Ratio

5.07

10.03

11.09

15.05

1.38

Assets Backing Ratio

12.14

11.96

12.18

10.79

8.59

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

1.61

2.51

5.94

9.73

0.63

Net Profit Margin

1.48

2.18

5.78

8.66

0.63

Return On Net Assets

4.91

9.00

18.08

29.06

6.65

Return On Capital Employed

4.91

9.00

18.08

29.06

6.63

Return On Shareholders' Funds/Equity

3.94

7.64

17.34

26.53

2.03

Dividend Pay Out Ratio (Times)

0.57

1.31

0.28

0.21

0.00

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

0

0

0

0

0





FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.60.05

UK Pound

1

Rs.101.65

Euro

1

Rs.83.08

 

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

MNL

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

Credit not recommended

--

NB

                                       New Business

--

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.